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1 ) It costs Fortune Company $ 1 2 of variable and $ 5 of fixed costs to produce one - bathroom scale, which normally
It costs Fortune Company $ of variable and $ of fixed costs to produce onebathroom scale, which normally sells for $ A foreign wholesaler offers to purchase scales at $ each. Fortune would incur special shipping costs of $ per scale if the order was accepted. Fortune has sufficient unused capacity to produce the scales. If the special order is accepted, what will be the effect on net income?
a $ increase ANSWER
b $ decrease A B C OR D:
c $ decrease
d $ increase
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